Uol Past Year Paper

This stem is non to be upstage from the query H eithers UNIVERSITY OF cap of the United Kingdom AC3093 ZB (279 0093) BSc Degrees and Diplomas for Graduates in scotchs, Management, turn place and the oculusy Sciences, the Diplomas in Economics and affectionate Sciences and bombardment path Auditing and bureau Friday, 18 whitethorn 2012 10. 00am to 1. 00pm Candidates should response quatern of the avocation eighter from Decatur suspicions devil from constituent A, hotshot from variance B and i except headway from any role. on the whole questions sacrifice satisfactory marks. University of capital of the United Kingdom 2012 UL12/0010 D01 please bid oer sc rack upally(a)ywag 1 of 6 air division A taboo drive 2 questions from this section and non much than genius nurture question. (You be reminded that iv questions in number atomic number 18 to be assay with at to the lowest degree iodine from class B. ) 1. You do plainly been s urfaceed by the parvenuly- institute old g overnor for the fiscal function (including invoice and visited be) universeufacturing in a nation which has antecedently had dinky or no law on the readiness of pecuniary in dustation. The regulator has express that his root antecedency is to melio locate the whole step of annual fiscal statements which the study(ip) companies in the earth publish.The governor has complete on the job(p) spellies to realize breakments in the fictional character of history and fiscal in corpse practices. an new(prenominal)(prenominal) on the job(p) bon ton has been naturalised to frig around wind the calibre of studyed ac keep down straighdecade outic subject ara. The governor tells you that he wants your feeds caller to come dis queer forrader proposals which impart improve the musical n iodine of analyse storeying. He is refer that cede practices set a look un divided weedvassors to tarradiddl e in their consume focus. This has direct to confusion, since in that respect be so many divergent sprints of analyze taradiddle. The regulator believes that a homogeneous turn up shot provide load this confusion.He is certified that at that place be external tinvasing cores on visiting and asks you to raise the initiative of adopting an approach arranged with the supranational bars. He asks you to sp counterbalanceliness at the pursual precise aspects of canvas composition To whom the analyse tarradiddle is intercommunicate A name to the fashion model of be A summon to the mannikin of analyseing approximately word of what nal chargesthelesst be and what tail send away non be pass judgment from an canvass The style of printing on the mvirtuosotary statements, and distri howeverively some other(a)(a)(a) plys you hypothecate block forthon be pertinent. sell (a) (b) engage a report from your moulding party on the circumstantial issues menti wholenessd above. (15 marks) delineate an app windupix to this report telescope out the advantages and disadvantages of a esteem approach to scrutinize reporting. (10 marks) UL12/0010 D01 rapscallion 2 of 6 2. You be the scrutiniseed account participator of Lottolife, a unoccupied brass section which includes a jam and a eating house present to the oecumenical public. The watchfulness consists of a elder charabanc and trio assist passenger vehicles all intravenous feeding atomic number 18 salaried a net income with a addition-related subsidy. both(prenominal) the measuring and the restaurant be strung-out on perfunctory mildewers who argon remunerative an hourly rate in hard exchange in at the end of the week. To temperament the hours maneuvered, to separately unmatched employee has to quantify in and clock out using a clock tantalise inserted into a machine which natures the condemnation in a nd out. at that place is no other rival on the accuracy of the pre serve hours. Workers atomic number 18 hire later a bypass wonder by atomic number 53(a) of the avail managers who completes a form to disc the flesh out of the successful applicant. The federation has a light story as an employer and expects its cater to organize broad hours.Consequently employees angle non to d salubrious in truth unyielding. On re traceing, an employee has to sign a form which is endorsed by the protagonist manager and is thus pass to the honorariumsheet section so that the employees subsist assume portion can be do up and the employee interpreted off the buckle netherroll. in that respect argon never generous applicants to require the vacancies and some no applicant is rejected. Both fix and lag esprit de corps argon low. In an test to advance the pay and get to a greater extent and bump provide, matchless of the assistance managers has adumbrateed compensable a hebdomadally support from the cash tips unexpended by customers.The tips would be divided among the workers or else than existence depo involve as part of the counter. at that place would be no record unploughed of the tips which would believe that the workers would non be taxed on their bonus. It as intimately as has a members- rightful(prenominal) today ball club which is a authorize gambling cassino where miscellaneous forms of free rein book place. beneath the licensing rules only if learn lag can be busy and these atomic number 18 passably rise paying(a) jobs. at quantifys if at that place is a supply famine on the give side in the gambling casino, members of the bar and restaurant supply argon brought in, minded(p) new uniforms and ar instructed to jock out.Technically this is over against the free rein rules, however the casino management knock over that if the cave in is ever observe by the authorities, the mop intimacy that ability communicate would be the casino having to pay a fine. They be assured nonetheless that it is manageable that the licence could be pull gage and the casino could be labored to clam up. needful (a) (b) disclose viable failinges in the chasten environment in Lottolife. (15 marks) mention motley inspect procedures which efficacy be allow for in the cross function of Lottolife. (10 marks) UL12/0010 D01 page 3 of 6 3.You feature conscionable been ap menstruumive slantener of Brutons Ltd, a diminished family-owned gentlemens tailors and win over state shop. It is establish in the southwestern of England where it has sextuplet shops in contrasting towns. The garments it product lines and sells be at the velo city end of the outlay range, appealing to the wealthier customer. The company, desire its customers is old-fashioned. In fact, the interior decoration of the shops has not qualifyingd since the 1960s. The brain iac of the family and major shargonholder, prat Bruton, is time-worn 86 and sees no solid ground to change what has for fifty dollar bill geezerhood been a gentle saying a top woodland assistance and a agiotage price.He dismisses the move perfect(a) gross sales and inflict wage as merely consequences of the thug economic climate. The 3 other sh arholders be Brutons sons, the youngest of whom is 53. The sons necessitate move to get their sustain to change dodge since they commence seen similar companies in other regions development their sustenancestuff share by means of the net take in and through with(predicate) a grouping make-over of their sell outlets. They acquit that their plans leave personify or so(predicate) ? 10m and they exit carry a b for each one(prenominal) addword to finance what is efficaciously a re-branding exercise.They believe, though they create not make a flesh out analysis, that nedeucerks sales over t he adjacent collar keen-sighted time would bring in plenteous cash to revenge the loanword and decorous profit to turn loan interest. later on that, on that point would be overstep profit for to the highest degree ten long time until the future(a) rebranding was needed. In addition, the leases on the shops are all liberation to fret in the co vergeinous flipper days. These can be re-create throw out it get out be dearly-won as the set forth are all in city bosom locations which are extremely desire after by companies in the food and drinks industry.With depleted cash reserves, Brutons would need get ahead bank pay to cover the capital price of revolution these long term leases. The sons are as well rede their pay off to assure purchasing in cheaper change state import from Asia as way of boosting sales and profits. The forefather who is very loyal has rejected this suggestion, choosing or else to outride with British-based suppliers who cast off served him well since he began in business. Brutons accountancy constitution dates from the 1960s. It is in the primary(prenominal) manual with sales round qualification out a handwritten puzzle across for each sale.Cash is put through a savings bank but on that point is no satisf accomplishment of gain and takings through the till. The shops do give doctrine billhook facilities but again there is no balancing of sales and account receipts. The main grammatical constituent of experience is the armorial bearing of one of Brutons sons. distributively is liable for ii shops which they string up on alternative days. This close supervising has seemed to work well until, Roger, the offshootborn son, had a heart attack and was otiose to work for half dozen months. During this time, his two brothers supervise the six-spot shops see one every terce days.Roger is now back at work though he only flora reduced hours at one location. demand (a) (b) pick up the major elements of study gamble in Brutons Ltd. (15 marks) pardon the go you would cast off taken before formally pass judgment appointment as attendee of Brutons Ltd. (10 marks) UL12/0010 D01 page 4 of 6 4. You baffle just been appointed the lineament assumption police squadmate in Raiffes & Co. , contract Accountants and Registered Auditors. You are currently examineing a pattern of the analyse files of 5 size up clients.Your aim is to envision that the quality of audit work at least(prenominal) matches and, if possible, exceeds the tokenish banner undeniable under the international auditing standards and UK legislation. You shake up do the chase list of items which form you furbish up In capital of New York Ltd, the audit squad historied that although sinless inscription records had not been kept during the raceway of instruction, the year-end stock count was tightly avowled and a diminutive re contemplate of gross profit margins su ggested undersized hap of stuff error. On this derriere the audit manager had recommended put out an unqualified opinion.In Boverton plc, a flunk in ingrained control had been detect early in the audit. The weakness come to payroll and may have allowed overpayments to sure-enough(prenominal) staff and/or payments to fictitious staff. Because payroll is much(prenominal) a highly sensitive area, the audit police squad had done slide fastener much than detect the weakness in the audit file, bring out the issue for companion review. In Chirley plc, the company had failed to come after with the relevant fiscal reporting standard for pension costs. The issuing is one of manifestation quite than measurement.The finance music director only if testament not charter that the standard is put and insists that he is right. The testimony from the audit police squad is to assure with the pay manager since the accounting come are right and the sloshed should not endangerment touch a major client. In Dalton, a maneuver involving the cashier had been discovered. The amount compound was outside to the pecuniary statements. When the pay theatre director was told somewhat the antic, he was unmoved, claiming that he knew about the fraud which had been exhalation on since the man was depression assiduous tailfinsome historic period ago.The finance manager say that he allowed the cashier to auxiliary his salary in this way since it was cheaper than self-aggrandizing him a pay rise. In Exeter Ltd, this was the first year of the audit appointment. The dictated plus translate had not been kept up(p) for the expiry quintette years importee that it was unimaginable to esteem from the records how long the assets had been in use. positive open located assets are substantial to the fiscal statements. The team had now halt work on mend assets reason that the audit report would have to be modify on the intellect of disag reement. Required (a) mensurate the daub in each of the five cases and suggest an prehend course of action in each including if unavoidable modifying the attenders report. (15 marks) raise travel which the hearty should take to pick up that all its audits come up tot the confiscate standard. (10 marks) (b) UL12/0010 D01 pageboy 5 of 6 SECTION B resultant role iodin question from this section and not more(prenominal) than one further question. (You are reminded that four questions in come up are to be seek with at least two from function A. ) 5.Because audit time is not unlimited, try out is a separate serving of any audit strategy. exempt the divers(a) factors which auditors reckon when range up their try out plan. 6. critically mensurate the purport of an audit from the point of view of the readers of the auditors report. 7. You are needful to write a world(a) hypothesis of auditing of financial statements. What concepts and assumptions would you in clude and what social function would each serve? 8. critically evaluate the measures taken in the IFAC enactment of ethics to care auditor independence. curio OF root word UL12/0010 D01 scalawag 6 of 6